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The EUR/USD pair was continuing to trade upwards from the level of 1.1162.

Yesterday, the pair rose from the level of 1.1162 (daily pivot point) to the top around 1.1223.

Today, the first resistance level is seen at 1.1265 followed by 1.1303, while daily support is seen at 1.1162. According to the previous events, the EUR/USD pair is still moving between the levels of 1.1162 and 1.1303.

Consequently, we expect a range of 141 pips in coming hours. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.

Subsequently, if the trend is able to break out through the first resistance level of 1.1265, we should see the pair climbing towards the new double top (1.1303) to test it.

On the contrary, if a breakout takes place at the support level of 1.1162, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.1126.

We have already seen the expected corrective decline to 142.39. GBP/JPY should be ready to challenge the upside again. We expect a rally above 143.43 that will confirm a continuation of the upside movement to 145.36 in order to complete wave b on the ongoing a-b-c correction. The correction is expected to be completed near 139.82.

In a short-term perspective, a break above minor resistance at 142.89 will indicate that the minor correction is completed and the final leg of wave b towards 145.36 is unfolding.

R3. 143.64

R2: 143.39

R1: 143.19

Pivot: 142.89

S1: 142.58

S2: 142.39

S3: 142.09

Trading recommendation:

We are long 50% GBP from 141.50 with our stop set at break-even. We will place take profit while opening a sell position on GBP at 145.20.

After a minor correction EUR/JPY should be ready to challenge the upside again. There will be a rally towards 123.55. This rally will complete red wave iii and set the stage for a more prolonged correction in red wave iv.

In a short-term perspective, a break above minor resistance at 122.02 will indicate next upside attempt to start a rally to 122.50 on the way to a higher level of 123.55.

Only an unexpected break below the support level at 121.52 will indicate a development of a more complex correction in blue wave (iv). This will also call for another dip below 121.03.

In Asia, Japan will not release any economic data reports today. However, the US will publish such some economic data as CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, HPI m/m. So there is a strong probability that the USD/JPY will move with low to medium volatility during this day.TODAY'S TECHNICAL LEVELS:Resistance. 1: 108.77.Resistance. 2: 109.01.Resistance.3 : 109.23.Support. 1: 108.57. Support. 2: 108.33. Support. 3: 108.11.(Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

When the European market opens no economic data reports will be released in the eurozone. However, the US will provide such economic data such as CB Consumer Confidence, S&P/CS Composite-20 HPI y/y, HPI m/m. Amid the reports, EUR/USD can see from low to medium volatility during this day.TODAY'S TECHNICAL LEVELS:

Since November 14, the price levels around 1.1000 has been standing as a significant DEMAND-Level which has been offering adequate bullish SUPPORT for the pair on two successive occasions.

Shortly-after, the EUR/USD pair has been trapped within a narrower consolidation range between the price levels of 1.1000 and 1.1085-1.1100 (where a cluster of supply levels and a Triple-Top pattern were located) until December 11.

On December 11, another bullish swing was initiated around 1.1040 allowing recent bullish breakout above 1.1110 to pursue towards 1.1175 within the depicted newly-established bullish channel.

Initial Intraday bearish rejection was expected around the price levels of (1.1175).

On December 20, bearish breakout of the depicted short-term channel was executed. Thus, further bearish decline was demonstrated towards 1.1065 where significant bullish recovery has originated.

The current bullish pullback towards 1.1235 (Previous Key-zone) should be watched for bearish rejection and another valid SELL entry.

On the other hand, bullish persistence above the price zone of 1.1175 favors the bullish side of the market. That's why, bearish breakout below 1.1175 is mandatory to allow next bearish target to be reached around 1.1120.

Trade recommendations :

Conservative traders should wait for evident bearish rejection signs around the price levels of (1.1235) as a valid SELL signal. Bearish projection target to be located around 1.1175 and 1.1120.

Leading cryptocurrency exchange Binance will suspend ETH deposits and withdrawals to support the recently announced Ethereum Muir Glacier update, according to information published on the exchange's official blog. Deposits and withdrawals on the platform will be suspended before the block amount of 9,200,000.

While the upgrade will not affect Ethereum trading, deposits and withdrawals will be reopened when Binance decides that the improved network is stable. The Exchange emphasizes that it will not issue a separate message about the resumption of deposits and withdrawals, and recommends making deposits in full before upgrading.

"Leave sufficient time for full processing of deposits before the above ETH network block height. We will deal with all technical requirements for all users who have ETH on their Binance accounts," reads the announcement.

Described in the November 22 proposal by Ethereum developer James Hancock, the Muir Glacier update will be launched on the main network on January 1, 2020, at block 9 200,000. The exact date may change due to variable times and time zones of blocks, and block statistics in real-time are available on the website.

Technical Market Overview:

The ETH/USD pair has made the local high at the level of $136.64 and the candle that was used to make this high looks like a Pin Bar candlestick pattern. The bulls have temporary control of the market, but it might not last for long as the price is getting closer to the key technical resistance area. Nevertheless, it is worth to keep an eye on the current developments of the Ethereum market, despite the fact, that the market is currently trading aimlessly inside of a range. A breakout higher or lower can happen anytime now.

Weekly Pivot Points:

WR3 - $156.40

WR2 - $145.89

WR1 - $141.32

Weekly Pivot Point - $130.81

WS1 - $125.47

WS2 - $114.97

WS3 - $109.88

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.

An application for an ETF investment fund linked to Blockchain technology has been submitted to the Chinese national legislature, according to information disclosed by the Chinese Securities Commission.

The proposal submitted on December 24 by the Shenzhen Penghua Fund relates to an ETF that would track the results of a basket of listed shares from companies in the Blockchain sector.

If approved, the fund would be the first Blockchain ETF in China, according to information published by financial media.

On the same day the Penghua Fund was submitted, the Shenzhen stock exchange announced the "Blockchain 50 Index". The index consists of the top 50 Blockchain companies listed on the Shenzhen Stock Exchange in terms of market capitalization. Apparently, the list includes Ping An Bank, Midea Group and Zixin Pharmaceutical, among others. Companies from the new index reflect a wide cross-section of the industry, with specializations covering hardware development, technology and services as well as Blockchain applications.

If the Penghua Fund proposal is successful, many other asset managers will probably follow suit with their own fund proposals. Even now, when the Blockchain sector is still in its infancy, deepening political guidelines and the growing number of established companies in the industry may increase the popularity of national ETFs related to Blockchain.

Technical Market Overview:

The BTC/USD pair has been trading inside of a tight range located between the levels of $7,461 - $7,195. At the top of this range, another Pin Bar candlestick pattern has been made, which might indicate a possibility of a wave down. The key technical resistance is still located at the level of $7,601, so any rally higher must break through this level. On the other hand, the key technical support is seen at the level of $6,938.

Weekly Pivot Points:

WR3 - $8,243

WR2 - $7,942

WR1 - $7,641

Weekly Pivot Point - $7,288

WS1 - $6,995

WS2 - $6,660

WS3 - $6,345

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.

The GBP/USD pair has broken out form the short-term channel around the level of 1.3025 and is rallied towards the 38% of the Fibonacci retracement located at the level of 1.3137 where it was capped. Currently, the market is trading inside of a narrow resistance zone located between the levels of 1.3101 - 1.3131, so any breakout higher will directly expose the Fibonacci retracement. Please notice, the strong and positive momentum which is behind the move up, but please notice as well the overbought market conditions that may lead to the corrective cycle. The nearest technical support is located at the level of 1.3012.

Weekly Pivot Points:

WR3 - 1.3395

WR2 - 1.3256

WR1 - 1.3182

Weekly Pivot Point - 1.3041

WS1 - 1.2971

WS2 - 1.2819

WS3 - 1.2756

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509.

The EUR/USD pair has been rallying towards the swing high located at the level of 1.1199. This high has been violated and a new local high was made at the level of 1.1220. Since then, the market is consolidating the recent gains in a narrow range. Please notice, the bulls are now testing the short-term trendline resistance from below as well as the level of 1.1210 is very close to this line. Moreover, the rally might be terminated soon, despite the strong and positive momentum, the market is in the overbought conditions. The nearest technical support is seen at the level of 1.1174 and the next technical resistance is located at the level of 1.1232. Although the higher timeframes trend remains bearish, the global investors must take into account, that the EUR/USD might be finally breaking up from the multi-month Ending Diagonal pattern.

Weekly Pivot Points:

WR3 - 1.1349

WR2 - 1.1265

WR1 - 1.1228

Weekly Pivot - 1.1151

WS1 - 1.1114

WS2 - 1.1029

WS3 - 1.0994

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1040 and the technical resistance at the level of 1.1267.

Since November 14, the price levels around 1.1000 has been standing as a significant DEMAND-Level which has been offering adequate bullish SUPPORT for the pair on two successive occasions.

Shortly-after, the EUR/USD pair has been trapped within a narrower consolidation range between the price levels of 1.1000 and 1.1085-1.1100 (where a cluster of supply levels and a Triple-Top pattern were located) until December 11.

On December 11, another bullish swing was initiated around 1.1040 allowing recent bullish breakout above 1.1110 to pursue towards 1.1175 within the depicted newly-established bullish channel.

Initial Intraday bearish rejection was expected around the price levels of (1.1175).

After the DApp browser MetaMask got removed from the Google Play Store, Apple followed suit and is forcing crypto exchange Coinbase to remove the DApp browser feature from its iOS app. While many saw this as blatant censorship and a danger to the crypto industry, it goes to show that the DApp market has gotten so big, it's putting both Google and Apple at risk.

Technical analysis:

Bitcoin has been trading inside of the consolidation at the price of $7.217 and potential for the further downside movement. I do see potential completion of the upward correction ABC (running flat), which is a sign that selling is in play... Watch for selling opportunities and target at the price of $6.455.

MACD oscillator is showing neutral stance and contraction, which is sign that there is the big move that is coming and potential expansion period.

Yellow rectangles – Current trading range

Resistance levels are seen at the price of $7.400 and $7.700

Support levels are set at the price of $7.030 and at the price of $6.455

Gold has been trading upwards in the recent few days. I found that that Gold is at the main multi-pivot resistance at the price of $1.515 and that you should watch for the reaction around this main resistance.

In case of the further upside breakout, the next upward target would be at $1.534.

In case of the stronger rejection of the main resistance at $1.515, downside target might be set at $1.495.

MACD oscillator is showing decreasing on the last upside movement and potential for the downside correction.

Yellow rectangle – Multi pivot resistance

Resistance level is seen at the price of $1.515

Support levels are set at the price of $1.508 and at the price of $1.495

GBP/USD has been trading upwards most recently but I found the rising wedge pattern in creation and potential for further downside. I do expect downside movement and test of 1.3063 and 1.3016. Watch for selling opportunities.

MACD oscillator is showing 3 pushes up and bearish divergence, which is another sign of the exhaustion from buyers.

Downward slopping line – Expected path

Rising upward lines – Rising wedge pattern

Resistance level is seen at the price of 1.3150

Support levels and downward targets are set at the price of 1.3063 and 1.3016.

GBP/JPY continues following the expected path higher in wave b. When the wave was completed just below our expected target-zone between 141.36 - 141.42 (the low was seen at 141.14), GBP/JPY moved higher. The corrective rally took over wave b. The ideal target for this b wave is seen at 145.36. From this point a new decline towards 139.82 should be seen in wave c of the zig-zag correction.

In a short-term perspective, we expect a minor corrective drop to 142.69 and even closer to 142.39. The next rally to 145.36 can complete wave b and set the stage for a new decline in wave c towards 139.82.

R3: 144.44

R2: 143.81

R1: 143.46

Pivot: 143.35

S1: 142.92

S2: 142.69

S3: 142.39

Trading recommendation:

We are long 50% GBP from 141.50 and we have placed our stop at the break-even level. And we will take profit and sell GBP at 145.20.

EUR/JPY has rallied nicely from the blue wave (iv) low at 121.06 and is headed for our long-term target at 123.55. In a short-term perspective, we will be looking for a minor set-back to 121.99 before the next rally towards 123.00 and the target of 123.55. That is expected to complete red wave iii and set the stage for a more pro-longed correction in red wave iv. But now, keep you attention to the upside movement after a minor corrective decline to 121.99.

R3: 123.00

R2: 122.67

R1: 122.46

Pivot: 122.30

S1: 122.26

S2: 121.99

S3: 121.85

Trading recommendation:

We are long EUR from 120.25 and we have moved our stop higher to 121.40.

Despite a strong first half of 2019, BTCUSD had a disappointing second half of the year. Price peaked in June just below $14,000 and is now trading nearly 50% lower. However not all are lost for bulls as price is holding above major Fibonacci support and reversal area.

Red lines - wedge pattern

BTCUSD is still in bearish trend inside the downward sloping wedge pattern. Price is still trading around the 61.8% Fibonacci retracement of the entire leg higher that started back in September of 2018. BTCUSD so far has shown no reversal sign. Price could easily fall towards $5,000 if price gets rejected at the upper wedge boundary. The 61.8% Fibonacci retracement is a Fibonacci level that we usually witness trend reversals. Will the same happen in BTCUSD?Will we see another strong 1st semester? Bulls must recapture $7,900 first and then $10,000 in order to regain control of the trend.

USDCAD remains in a bearish trend. Price has reached the lower triangle boundary of 1.3070 and it is imperative for bulls to step in and react now. Price is at major technical support level and moving lower will worsen the longer-term view for USDCAD.

Blue lines - long-term channel

Red line - major resistance trend line

Black line -upper triangle boundary

Green line - lower triangle boundary

USDCAD is at the verge of exiting the long-term bullish channel. Price has been rejected several times at the upper triangle boundary and has so far been unable to challenge the red resistance trend line. This puts the long-term bullish channel in danger. This could imply a bearish 2020 for USDCAD as price remains below 1.33. Breaking below 1.30 will be a bearish sign that could push price towards 1.27 or lower. Short-term traders should be looking at the bullish opportunities now as price is very close to critical support and a bounce is highly probable.

Gold price has given several bullish signals but bulls need to be cautious. Usually after such cloud break outs we have a back test. If this back test unfolds as usually, we should not be surprised to see Gold price retest $1,500-$1,490.

Red line - resistance (broken)

Green line - support

Gold price is short-term overbought. Price justifies a pull back towards the cloud support or at least the tenkan-sen (red line indicator). The expected pull back should reach the $1,500-$1,490 area. Bouncing off that area would be another bullish sign. At current level I prefer not to add to long positions and chase the price. Patience is needed for traders to wait for a pull back. Trend is bullish as long as price is above the cloud.

EURUSD is bouncing higher recapturing key short-term and medium-term resistance levels. Price is making higher highs and higher lows bringing hope to bulls for a strong start for 2020. EURUSD has managed to break above October highs.

Red rectangle- resistance

Blue rectangle -support

EURUSD has managed to hold above the blue support area and to produce a higher low that has lead to a higher high. The RSI is confirming this high. This means that our initial target of 1.1280 has high chances of being met. Trend is bullish. Support is at 1.11-1.1070. Short-term trend remains bullish as long as we are above that area. Resistance is now found at 1.1280. Holding above 1.12 is crucial for bulls. The end of the year will most probably find EURUSD at the highest level of the last quarter, giving hopes for more upside for the 1st quarter of 2020.

The GBP/USD pair set above strong support at the level of 1.2904, which coincides with the double bottom in the H4 time frame. This support has been rejected for four times confirming uptrend veracity.

Due to the upcoming New Year's holidays of 2020, the trading working hours of many major financial centers was changed, which affected the trading of the GBP/USD pair notably, because the market was not stable and the trend was not clear.

Hence, major support is seen at the level of 1.2904 because the trend is still showing strength above it.

Accordingly, the pair is still in the uptrend from the area of 1.2904 and 1.3070. The GBP/USD pair is moving in a bullish trend from the last support line of 1.2904 towards the first resistance level at 1.3137 in order to test it. The point of 1.3137 is coincided with the weekly pivot point at the same chart.

This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3137 and further to the level of 1.3281 in cmoing hours.

The level of 1.3281 acted as second resistance and the double top had already set at the point of 1.3514. At the same time, if a breakout happens at the support level of 1.2904, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.

Ethereum co-founder Vitalik Buterin has recently published an alternative proposal for an early transition to Ethereum 2.0.

In a post from December 23 at the ETH Research forum, Buterin defined an "accelerated schedule" for the transition from Ethereum 1.0 to Ethereum 2.0 through a new type of ETH validator called "eth1-friendly validators". According to Vitalik, this new alternative proposal will require less "re-analysis" on the web.

"In particular, it requires stateless clients, but does NOT require stateless miners and networking, and therefore requires much less re-analysis to achieve this," he writes.

At the same time, Vitalik noticed that the proposed alternative transition would still be possible using a procedure similar to the previously described transition to Ethereum 2.0.

Ethereum 2.0 is an important network update in the Ethereum Blockchain that was designed to transfer the current Proof-of-Work consensus algorithm to Proof-of-Stake. As soon as the Ethereum chain transforms into a PoS consensus, block validation will be passed from miners to special network validators.

The first stage of the Ethereum transition to Ethereum 2.0 is to take place on January 3, 2020. According to Vitalik's new alternative proposal, eth1-friendly validators can be expected to maintain both the old Ethereum 1.0 node and the Ethereum 2.0 navigation chain.

Technical Market Overview:

The ETH/USD pair has been seen rallying higher towards the technical resistance located at the level of $136.98 but did not quite break through it yet. The high was made at the level of $136.64 and the candle that was used to make this high looks like a Pin Bar candlestick pattern. The bulls have temporary control of the market, but it might not last for long as the price is getting closer to the key technical resistance area. Nevertheless, it is worth to keep an eye on the current developments of the Ethereum market.

Weekly Pivot Points:

WR3 - $156.40

WR2 - $145.89

WR1 - $141.32

Weekly Pivot Point - $130.81

WS1 - $125.47

WS2 - $114.97

WS3 - $109.88

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.

The Uzbek government has banned its citizens from buying cryptocurrencies. According to a local information point, the National Project Management Agency has banned citizens from buying cryptocurrencies, even on existing exchanges.

This decision is a surprise to many, because the country has previously shown relative gentleness against digital currencies. In September 2018, the government of the country signed a memorandum of understanding to regulate and establish a license for cryptographic exchanges, mining operations and ICOs. In the same month, Uzbekistan's president Shavkat Mirziyoyev ordered the creation of the state blockchain development fund called "Digital Trust". Last July, he also signed a decree on the development and integration of Blockchain technology with the country's public administration.

While the new regulation prohibits citizens from buying or selling cryptocurrencies, it gives some limited commercial rights to existing cryptocurrency owners.

Owners who are citizens of Uzbekistan can sell their current investments on two licensed exchanges after completing Know Your Customer procedures to avoid the possibility of money laundering. As for cryptographic assets whose origin cannot be proved, transferring or holding them in the country was considered illegal.

The Finance Magnates report notes that this right may prove ineffective given that citizens can use a virtual private network - or VPN - to bypass the ban and access foreign cryptocurrency trading platforms.

Technical Market Overview:

The BTC/USD pair has been trading inside of a tight range during the weekend. The range is located between the levels of $7,461 - $7,195 and at the top of this range another Pin Bar candlestick pattern has been made, which might indicate a possibility of a wave down. The key technical resistance is still located at the level of $7,601, so any rally higher must break through this level. On the other hand, the key technical support is seen at the level of $6,938.

Weekly Pivot Points:

WR3 - $8,243

WR2 - $7,942

WR1 - $7,641

Weekly Pivot Point - $7,288

WS1 - $6,995

WS2 - $6,660

WS3 - $6,345

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.

The GBP/USD pair has broken out form the short-term channel around the level of 1.3025 and is rallying towards the 38% of the Fibonacci retracement located at the level of 1.3137. Currently, the market is trading inside of a narrow resistance zone located between the levels of 1.3101 - 1.3131, so any breakout higher will directly expose the Fibonacci retracement. Please notice, the strong and positive momentum which is behind the move up, but please notice as well the overbought market conditions that may lead to the corrective cycle. The nearest technical support is located at the level of 1.3012.

Weekly Pivot Points:

WR3 - 1.3395

WR2 - 1.3256

WR1 - 1.3182

Weekly Pivot Point - 1.3041

WS1 - 1.2971

WS2 - 1.2819

WS3 - 1.2756

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509.

After the deep retracement to the level of 61% Fibonacci located at 1.1065 the EUR/USD pair has been rallying towards the swing high located at the level of 1.1199. This high has been violated and a new local high was made at the level of 1.1210. Please notice, the bulls are now testing the short-term trendline resistance from below as well as the level of 1.1210 is very close to this line. Moreover, the rally might be terminated soon, despite the strong and positive momentum, the market is in the overbought conditions. The nearest technical support is seen at the level of 1.1174 and the next technical resistance is located at the level of 1.1232.Although the higher timeframes trend remains bearish, the global investors must take into account, that the EUR/USD might be finally breaking up from the multi-month Ending Diagonal pattern.

Weekly Pivot Points:

WR3 - 1.1349

WR2 - 1.1265

WR1 - 1.1228

Weekly Pivot - 1.1151

WS1 - 1.1114

WS2 - 1.1029

WS3 - 1.0994

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1040 and the technical resistance at the level of 1.1267.

In Asia, Japan will not release any economic data today, while the US will publish some economic reports such as Pending Home Sales m/m, Chicago PMI, Prelim Wholesale Inventories m/m, and Goods Trade Balance. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

The GBP/USD pair rally bounced from the technical support located at the level of 1.2904 but is still trading inside of a narrow channel. The bulls have managed to break through the short-term descending trendline resistance around the level of 1.2970 and clearly want to continue the move up. Moreover, the market is bounced from the oversold conditions and the momentum just broke through the fifty levels, which means the move up might get some steam. The next target for bulls is seen at the level of 1.3039 and 1.3101. The immediate support is seen at the level of 1.3012, 1.2988 and 1.2962.

Weekly Pivot Points:

WR3 - 1.3654

WR2 - 1.3526

WR1 - 1.3206

Weekly Pivot - 1.3091

WS1 - 1.2763

WS2 - 1.2640

WS3 - 1.2325

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is up. All downward moves will be treated as local corrections in the uptrend. In order to reverse the trend from up to down, the key level for bulls is seen at 1.2756 and it must be clearly violated. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3509.

The main events of the outgoing year, which had a significant impact on world financial markets, were the trade confrontation between America and China, the situation around Britain's exit from the European Union and the monetary policies of the world's largest central banks.

These events were really the main ones and conducted the markets to the full. Of course, the results are necessarily summed up at the end of the outgoing year, but the most important thing is to identify or highlight the important topics of the coming year, which will highly affect the mood of market players and the dynamics of financial instruments.

The first and foremost remains the situation with trade negotiations between Washington and Beijing. The signing of the "1st phase" of a new trade agreement does not solve all the problems, but only a part of them. Therefore, the further success of their resolution will be in the focus of the markets. Under the influence of this topic, the volatility of all financial markets can significantly increase without exception.

On the other hand, the problem of UK exit from the EU is supposed to be completed on January 31. However, there is a risk which is quite high, that this Brexit epic may drag on, but in our opinion, at least for the first quarter of the new 2020. But unfortunately, the problems of the divorce of Britain and the EU, from which the negative impact of this event on the economies of continental Europe and "foggy Albion" will have a significant impact on the exchange rates of the euro and sterling for a long time to come even if everything is resolved.

Now, let's move to the issue of monetary policies of the largest world Central Banks. We expect them to remain soft and super soft. The Fed will pause the decision on rates, which may support the exchange rate of the American currency, especially against the euro. The ECB, most likely in the wake of Brexit, as well as the weakness of the European economy, will still expand incentive measures, which will weaken the single currency. In turn, sterling will fully depend on the situation with Brexit and its consequences. On the other hand, the Japanese yen will continue to be held hostage to its function of a safe haven currency, as will the Swiss franc. Commodity and commodity currencies will depend entirely on the situation around the Washington-Beijing trade negotiations, which will also have a significant impact on the dynamics of crude oil prices while stocks markets are likely to remain in favor, primarily due to the soft monetary policies of the world's Central banks.

Another event will not pass the markets - this is the election of a new US president. The tense struggle between D. Trump and the Democratic Party will only escalate, which could cause market unrest. Therefore, in general, we believe that nothing catastrophic will happen in the global economy.

Forecast of the day:

The USD/CAD pair is trading above the level of 1.3100. Thus, we consider it possible to sell it after crossing this level with the target of 1.3060 in the wake of an increase in crude oil prices.

Gold quotes could not break through the strong resistance level of 1516.00. We consider it possible to sell it with a likely reduction in price to 1500.00, and then to 1491.00, which will correspond to Fibonacci retracements of 23% and 38%.

The EUR/USD pair has bounced strongly from the 61% Fibonacci retracement on 20th December and keeps going higher. The first rally has been capped around the level of 1.1096, but after some struggle, the bulls have managed to continue to rally higher and are currently trying to hit the level of 1.1144, which is the next target for them (it is a technical resistance for the price as well). Any breakout above this level might lead to the old trendline test, but to do this the bulls would have to break through the technical resistance located at the levels of 1.1167 and 1.1179. Although the higher timeframes trend remains bearish, the global investors must take into account, that the EUR/USD might be finally breaking up from the multi-month Ending Diagonal pattern.

Weekly Pivot Points:

WR3 - 1.1242

WR2 - 1.1207

WR1 - 1.1132

Weekly Pivot - 1.1099

WS1 - 1.1021

WS2 - 1.0984

WS3 - 1.0910

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1040 and the technical resistance at the level of 1.1267.

Euro strengthened slightly against the US dollar. Yesterday's data showing that the number of Americans who applied for unemployment benefits decreased for the first time, did not affect the market significantly. Also, the report from the US Department of Labor is incomplete, as it is characterized by increased volatility between Thanksgiving and mid-January next year. However, even without these data, it is clear that the American labor market is in full order, gradually making its way to its historical lows.

According to the report, for the week of December 15 to 21, the number of initial applications for unemployment benefits fell by 13,000 and amounted to 222,000. Economists have expected this number of initial applications to be at 220,000 only. Meanwhile, as for the revised data for the week of December 8 to 14, the number of initial applications increased by 1,000, and amounted to 235,000.

In total, the moving average of applications for four weeks rose by 2,250 and amounted to 228,000.

As for the figure on the secondary number of applications for unemployment benefits, which are Americans who remain out of work for more than a week, for the week from December 8 to 14, it fell by 6,000 as well, and amounted to 1.72 million.

Other important fundamental data were not released on Thursday. This led to a reduction in traders' long positions in the US dollar, enabling risky assets to strengthen slightly by the end of this week.

As for the technical picture of the EUR/USD pair, at the moment, the upward correction in euro may continue. This will lead to an update of the highs at 1.1130 and 1.1160. Without a good fundamental recharge, breaking above these levels is unlikely. If the pressure on risky assets returns, with such a thin market in pre-holiday days, it is quite possible, without the publication of statistics, that the pair will be supported by a minimum of 1.1070. A larger area is seen as well around 1.1040.

USD/JPY

The Japanese yen strengthened against the US dollar after data that the core consumer price index (CPI) in Tokyo rose to 0.8% year-on-year in December. Economists had expected the figure to be at 0.6% only. As for inflation, taking into account the volatile categories, the Tokyo CPI in December was at 0.9% per annum, compared to November this year where it remained unchanged.

Yen was also supported by the unemployment rate data in Japan, which fell to 2.2% in November, returning to the lows of the year. Economists had expected it to remain at 2.4%. The ratio of jobs to job seekers in Japan in November is 1.57, as compared to 1.57 in October.

The real problems with the rising inflation in Japan remain even amidst such low unemployment and interest rates. Let me remind you that just recently, Bank of Japan Governor Haruhiko Kuroda said that if there are minimal signs of slowing the movement of inflation, he would not hesitate to resort on lowering interest rates and additional measures to ease monetary policy. Apparently, today's data indicate the continuation of a wait-and-see position on the part of the regulator, which will support the yen in the future.

Meanwhile, the annual drop in retail sales in Japan, as well as the reduction in industrial production, is unlikely to add optimism to traders who bet on the strengthening of yen in the short term. According to the data, sales in Japan decreased by 2.1% in November this year, as compared to the same period in 2018. Industrial production also decreased by 4.5% in November, as compared to October, while economists had predicted a fall of only -1.2%.

In general, the weakening of the Japanese yen and the upward trend of the US dollar, which was formed at the end of this summer, remains. While the pair is in a narrow side channel of 109.30-109.70, we can expect a breakthrough on the upper border, and a new wave of growth on the trading instrument in the area of highs 110.00 and 110.60. Breaking the lower limit of this range will push the dollar back to the support of 108.50

Markets continue to win back the positives associated with the signing of the first phase of a trade deal between the US and China and rising expectations for a global economic recovery. On Thursday, US stock indices updated historical records again. At the same time, the S&P 500 closed at 3239.91 and a rise in commodity prices was recorded on Friday morning. Brent surpassed the level of 68 dollars per barrel in anticipation of increased consumption.

Moreover, additional positive growth was ensured by the passage through Congress of a bill on government financing in 2020. Now, given that there is no deterioration in employment rates and consumer confidence has stabilized at high levels, it can be assumed that the risks have decreased, which means that some positivity will dominate during that time.

US dollar declines against most G10 currencies, while commodity currencies are especially confident. At the same time, there is still no serious reason to believe that the peak of the crisis is over - the growth in consumer activity by the end of the year is quite explained by seasonality, while the Brexit factors and the US-China deal have no clear prospects. The risk of breaking the agreement is real, although the key contradictions have not been resolved.

Forecasts for bet are neutral. On the one hand, a three-fold reduction in the rate this year has brought an additional impulse to the US economy. Thus, it is unlikely that the Fed will continue to lower the rate in the face of lower risks. On the other hand, the probability of a rate increase is even less, as inflationary expectations remain depressed.

As a result, the most likely scenario in the currency exchange market in the coming days is the development of current trends. The threat of sudden changes in sentiment is low.

NZD/USD

The NZIER Institute in a quarterly study of the state of the New Zealand economy worsened forecasts for most parameters when compared with September. NZIER expects not only a slowdown in GDP growth, but also a decrease in investment in business, a slowdown in exports, housing. However, inflation is forecasted to be positive only in the coming months, after which it will move down from the target levels of RBNZ. Therefore, a worsening labor market and a slowdown in wage growth are also expected.

The question of the RBNZ rate remains open. After an unexpected reduction in August, bets immediately went by 50p. As a result, RBNZ in November did not take any steps and took a break. In fact, the Central Bank was forced to act faster than the markets expected. These steps led to a positive impact on the economy - mortgage rates fell, which led to an increase in housing construction and household expenses.

Meanwhile, ANZ Bank also adheres to a close assessment, which predicts that the RBNZ will be forced to recognize the negative dynamics in inflation by May and will lower the rate again.

As a result, the forecast for TWI (NZD trade-weighted rate) for the coming months is positive, but it looks worse since spring than in September. This means that kiwi is close to the exhaustion of momentum, and thus, the factors that led to an increase in NZD in October-December are weakening.

Growth may continue if markets rely on continued global economic recovery, but such a scenario is unlikely. Resistance 0.6790 is reachable, however, the formation of the top and the closure of long positions will most likely begin near this level. On the other hand, closer is the resistance 0.6710 / 25. This is most likely the boundary of the growth of NZD in the current impulse.

AUD/USD

The Australian dollar has been steadily adding in recent days. The growth is steady, because it relies not only on positive changes in the external background, but also on its own domestic economic factors. Moreover, Australian currency received a strong impulse on December 19 after the publication of the employment report, which turned out to be noticeably better than expected in most parameters.

At the same time, a strong labor market gives the RBA reason to hold a pause in monetary policy, rising commodity prices and lowering tension support commodity currencies. Technically, AUD continues to implement the impulse, testing of the upper border of the channel 0.6975 / 80 is expected, after which either a correctional decline to supports 0.6927 or 0.6870 / 80 or a breakthrough of the channel will follow.

On Friday, the price can continue the pullback upward movement with the target of 1.3050, a pullback level of 23.6% presented in a blue dashed line. If this line is reached, continue to work upward with the next target 1.3139 which is a retracement level of 38.2% presented in a blue dashed line.

Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger Lines - down;

- Weekly schedule - up.

General conclusion:

Today, the price may continue to move up.

Another scenario is unlikely, but a different scenario is possible where from a retracement level of 14.6% which is equivalent to 1.2995 presented in a blue dashed line, work down, with a target of 1.2905 the lower fractal presented in a blue dashed line.

On Friday, the price may continue to move up with the first target of 1.1128, the historical resistance level presented in a blue dashed line. If you reach this level, continue to work up.

Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger Lines - up;

- Weekly schedule - up.

General conclusion:

An upward trend is possible today.

There is an unlikely, but quite possible scenario where from a pullback level of 38.2% which is equivalent to 1.1117 presented in a red dashed line, the price goes down to the lower target of 1.1067, the lower fractal presented in a red dashed line.